Answer to Question #306628 in Statistics and Probability for Melaine J

Question

The average expenditure per student (based on average daily attendance) for a certain school year was $10,337 with a population standard deviation of $1560. A survey for the next school year of 150 randomly selected students resulted in a sample mean of $10, 798. Find the Z statistics? Should the null hypothesis be rejected at alpha = .05 level of significance?

Answer 1

Solution

µ=10337

 standard deviation=1560

sample mean(X) = 10798

n=150

H0:µ=10337

H1:µ≠10337

Z₀=x-µ/(s.d/sqrt(n))

Z₀=10798-10337/(1560/sqrt(150))

=3.6193

From normal tables get 0.0003

α=0.05

from standard normal table two tailed Zα/2=1.96

if Z₀>Zα we reject H0

0.0003<1.96

Yes the null hypothesis is rejected at α=0.05